Bombay High Court adjourns Nusli Wadia-Gopal Raheja case on Monday

MUMBAI: In the high profile tussle between industrialist Nusli Wadia and realty developer Gopal Raheja over a 600-acre land parcel in Malad suburb of Mumbai, the court has suggested battling parties to work out a mechanism though which they can appoint an independent third party to protect the rights of both the parties.

On Friday, division bench of Bombay High Court comprising Justice DY Chadrachud and Justice RD Dhanuka suggested that both the parties can identify a third person or can device a mechanism to arrive at market value of properties to be developed on the plot under dispute.

The court has also recommended that the valuation can be reviewed every six months so that Wadias--the caretaker of the land--can receive 12% share of the realization from the property.

The case has now been adjourned to Monday when both the parties can intimate the court regarding the preparedness to appoint such a third party valuer.

The dispute originates from certain developments in 1970, when Eduljee Framroze Dinshaw, owner of the land died in US, and willed his personal property to his sister, Bachoobai Dashkow.

According to the will, following Bachoobai's death, ownership of the brother's corpus would be distributed to two trusts based in US namely Salvation Army, New York, and the American Society for Prevention of Cruelty to Animals.

Two years later, Bachoobai appointed Nusli Wadia as the administrator of the estate. In 1995, Wadia, as the administrator of the land, entered into an agreement with Ferani Hotel Pvt Ltd, a company of Rahejas. Under this agreement, the Rahejas were allowed to develop the land and pay 12% share of gross genuine sales realisation to Wadia.

Rahejas have already developed malls Inorbit Mall and Hypercity, and a commercial complex Mindspace on the plot. Out of total 600 acres, around 460 acres is developable while rest is falling under non-development zone.